Clever Culture Systems Limited (ASX:CC5)
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Oct 16, 2026, 3:59 PM AEST
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Investor update

Oct 14, 2026

Summary

The PSC Biotech partnership expands APAS access through an established network and validation expertise, while preserving the existing customer sales process. A planned York demonstration hub and cleanroom portfolio synergies are intended to support adoption.

John Clapham
President and CEO, PSC Biotech

in about 52 different countries. We do have a software division, and that software is enterprise SaaS software, and that SaaS software is used by 15 of the 20 largest life sciences companies by revenue. The U.S. is our largest footprint. Our headquarters is in the Los Angeles area, specifically in Pomona, California, but we have offices scattered throughout the United States, including the Northwest, the Northeast, the Southeast, and in Texas. We also have two metrology labs. One is in California, one is in Pennsylvania, which really makes the stocking of spares and the ability to service customers very, very easy. We also have regional hubs in Ireland, Singapore, Taiwan, and China, as well as Dubai. We also have a presence in Australia.

We are in Melbourne as well as Brisbane in the Monash University incubator, as well as in the TRI office space in Brisbane, which matters because Singapore is now part of this agreement. The key line here is we are already on the floor in our clients' QC labs. We are a trusted partner in their compliance decisions, and that is why we are bringing APAS to our customers. Next slide. Why does this partnership make sense for our company, PSC Biotech? I can give you four very compelling reasons. We have a growing U.S. sector. There is a massive effort right now to onshore domestic manufacturing of essential medicines, key starting materials, and the like, and the market is $500 billion right now in terms of onshoring activity.

There is a significant amount of that capacity that is being onshored is sterile capacity, and sterile capacity means more environmental monitoring, more plates to read. It is very, very complementary. Our clients already come to us for validation services, engineering, regulatory, and software, and the APAS platform really fills a gap that we hear constantly. Manual environmental monitoring, plate reading is labor-intensive, it is subjective, and it is a reoccurring source of data integrity findings, and all our customers want to avoid all these issues wherever possible. The third compelling reason is the validation pull-through. Adopting the APAS system is not just a purchase. It needs a full life cycle of validation. It needs qualification, it needs change control, and validation. That is exactly what we do as our core business under our own agreements with our own customers. The fourth compelling reason is we are a solutions provider.

We like to bring the best in breed of technologies to our clients. Our clients just do not want a box or an instrument. They want a validated solution, and they want to make sure that it can pass the rigor of an FDA audit or inspection or an EMA audit or inspection. Together with CCS, we deliver the technology and the expertise to run through it. You will see the flowchart starting with number one. Clever Culture sells and installs the instrument. PSC Biotech executes the performance qualification and change control. The customer gets the GMP use. CCS keeps the pricing, the sale, and all reoccurring software and revenue and service revenue. The APAS system is the only U.S. FDA-cleared AI technology for automated cell culture plate reading, and it is already deployed or in evaluation at eight of the world's largest pharma companies.

That is the validation our mid-tier clients are looking for. Next slide. What you are seeing on the left-hand side is our facility, and our facility is located in York, Pennsylvania. It is a contract research development manufacturing organization in York, Pennsylvania. It is a wholly owned subsidiary of PSC Biotech Corporation. What we do here is sterile manufacturing. It is on 39 acres of land with room to expand. We have a total of nine cleanroom suites. Five of them are open for new projects. We do fill finish of liquid and lyophilized sterile injectables from clinical supply to commercial scale. We do a breadth of products. We do highly potent products, such as oncology products and live vaccines, as well as therapeutic products. We also have a 110,000 sq ft warehouse just around the corner. BioTechnique is really in its early growth trajectory right now.

We expect to create upwards to 250 jobs over the next three years. Why we strongly considered APAS. APAS is really a compelling sale for not only us, but all customers because it takes the variability out of the microplate reading, and it frees up people in the microbiology department to do more value-added activities beside plate reading. We believe that having a technology lab in York, Pennsylvania, gives our prospective customers the opportunity to look at this technology and get hands-on with this technology before they actually place a purchase. We believe that this is a very compelling way to sell this technology, to let the customers get hands-on with it and actually interact with a producing sterile manufacturing facility, and allow them to interact with the microbiology staff that support this facility and ask them specific questions.

It is in contrast to the way things are normally sold, which is just having a demo unit at a trade show. We believe that this is a very compelling way that will differentiate Clever Culture Systems in a very important American market. Our timing to purchase a system is within 90 days of this agreement, and we are targeting to have an APAS system in our center of excellence by the 31st of March 2027. We are super excited. Our customers want faster, more reliable, more compliant microbiology testing. Together with Clever Culture Systems, we believe that we can deliver this. Brent, back to you.

Brent Barnes
CEO and Managing Director, Clever Culture Systems

Thanks, John. Look, maybe this is kind of the final slide, then I will hand it over for some Q&A. What we have kind of outlined here is how the partnership works in practice. As you heard from John, PSC Biotech have a portfolio of companies and software and products, and really APAS slots nicely in to that existing sales and marketing process that they have already got in place. That is, if you like, that first box on the left. PSC Biotech will generate leads through a marketing and a promotional program, but I think importantly, it fits already into an existing portfolio of products.

The qualification part's an important one, and it kind of links back to that segmentation slide that I shared at the start, because the number of plates processed every day by our customers is an important data point to understand the value proposition that APAS either could or couldn't solve for these labs. PSC Biotech will work through a qualification process with the customer to assess the suitability of the technology with that customer. The third part there is that then there'll be a referral process. We'll work very closely with PSC Biotech.

We'll obviously communicate with each other, most likely have a checklist which outlines customer details, and work through this referral and acceptance, where CCS will review the opportunities and ultimately, once accepted, they go into a categorization bucket whereby once the sale is completed, then a commission is payable to PSC for those efforts. You've got kind of this one to five-step process where you've got the lead generation activities, the qualification activities, a referral process, Clever Culture Systems going through an acceptance process. Ultimately, Clever Culture Systems is the ones responsible to go through the final contracting with the customer, obviously set the pricing, and provide servicing. If you like, that's no different to what's happening today.

Today, when Clever Culture Systems goes to customers, we're the one contracting, we're the ones going through that sales execution and that sales process and contracting, providing service to our customers. None of that changes. What is absolutely changing here is that we're expanding our reach. The whole idea is that our qualified pipeline, the number of customers being educated, being made aware of APAS, is expected to grow. That will enter into a sales process that Clever Culture Systems still is in control of on a go-forward basis. The value proposition, John explained some of what that meant for PSC, so I won't go through that again.

In terms of the Clever Culture Systems, this is really all about expanding reach and doing so in a way that really preserves the work that we've done in terms of getting APAS in the market already and finding a partner to work with in the long term. The facility, the BioTechnique facility that John showed on that previous slide is super impressive. I was there with some colleagues recently meeting with John and the team, and there is so much capacity there. As John said, it's a very large facility that's in the, I guess, early stages of ramp up. That is going to be an amazing facility in the region and a great center of excellence in the very near term for APAS Independence to support the sales process.

With that, I will end the formal presentations and hand over Courtney to facilitate if anyone's got any questions.

Moderator

Thank you, Brent. We will now commence the questions answer session. If you would like to ask a question, either use the Q&A function on the Zoom control panel at the bottom of your screen, or raise your hand and wait for your name to be announced. If you wish to cancel your request at any time, simply remove the raised hand. Do we have some live questions?

Brent Barnes
CEO and Managing Director, Clever Culture Systems

Do you want me to open it up to? We've got one here with James. I might let James. Maybe I can manage this one, Courtney. I'll hand it over to James and allow him to kick off with the first question. James, over to you. You're on mute.

Speaker 4

All right. Can you hear me?

Brent Barnes
CEO and Managing Director, Clever Culture Systems

Yes.

Speaker 4

Yeah. Congratulations on this partnership. Could you please talk about how this arrangement will improve your ability to access additional clients, given, I suppose, the size of your sales team and relative to the size of the market?

Brent Barnes
CEO and Managing Director, Clever Culture Systems

Yeah. So look, we're resourced to focus on the largest pharmaceutical companies globally. Each of those have a center of excellence, so none of that changes. I think what's changing here is really with the PSC Biotech very much using their existing network. We don't expect to have a linear increase requirement in needing to add more resources from our sales perspective. Really what we're looking at here is to use the breadth and the reach that PSC Biotech already have within the region, predominantly in the U.S., having that referral process to kind of channel into Clever Culture Systems.

Speaker 4

Yeah. Given that PSC Biotech is a private company, perhaps could you give a bit more color on the breadth and the client base that they have and sort of existing work around similar technologies and how the APAS will fit within that?

Brent Barnes
CEO and Managing Director, Clever Culture Systems

Yeah. John, maybe you're best placed to answer that one.

Speaker 4

Yeah. Thank you, John.

John Clapham
President and CEO, PSC Biotech

Yeah, absolutely. This is extremely complimentary. We have a new technologies partnerships and innovation group, and as a core focus of that group, we are really focusing on the cleanroom environment. APAS fits nicely into that focus. Complimentary to that, we distribute for a company called Blue Ocean Robotics, and they make an autonomous UVD robot that disinfects cleanrooms. Obviously, as you disinfect a cleanroom, you want to make sure that it is properly disinfected. You do that using environmental monitoring, and that is exactly what the APAS system automates and reduces the amount of variability and subjectivity too. It is extremely complimentary. We are also working, and it is a little bit premature, but we are working on other autonomous solutions that are very complimentary to the APAS system that should provide additional synergies between APAS and some of the partnerships that we are working on.

We also have an existing global partnership with a non-viable particle monitoring system called Climet Instruments. They are an American company headquartered in Redlands, California. They make non-viable laser counters as well as viable monitoring systems. You can see the synergies between our existing portfolio of existing customers and partners and how that might complement the Clever Culture APAS system.

Speaker 4

Excellent. John, surely before you entered this partnership, you would have done a review of the various environmental monitoring technologies on the market. Could you comment on why you have chosen to partner with Clever Culture Systems?

John Clapham
President and CEO, PSC Biotech

Yeah. I think the biggest advantage I see with the APAS technology is it's media-agnostic. Some of the more prevalent competing solutions have proprietary media, which is extremely expensive. For companies that are looking to reduce operating expenses, I think APAS and Clever Culture has a distinct advantage.

Speaker 4

Thank you very much, John and Brent. Much appreciated.

Brent Barnes
CEO and Managing Director, Clever Culture Systems

Thanks, James. We've got another question here from Nick, from Taylor Collison. Nick, you're on mute, but I'll hand it over to you.

Speaker 5

Hi, Brent. Hi, John. Thank you very much for your time, and congratulations with the partnership. Just a question for John in regards to, say, when you assess the suitability of the APAS Independence unit with your clients, I assume that's sort of a Gemba walk type stage. How long does that take? I guess what sort of hurdles or questions do you see coming from those clients? How many plates do these type of clients read per month? Also, what do you think the internal validation time would be for these type of pharmaceutical manufacturing clients? Thank you.

John Clapham
President and CEO, PSC Biotech

That's an excellent question, Nick, and thank you for asking. It's extremely relevant to the amount of opportunity that Clever Culture and the APAS system has. As Brent properly pointed out, the principal market for Clever Culture is really in sterile facilities because they have the largest amount of environmental monitoring needs. Based on square footage and the different room classifications will ultimately determine how many plates are actually used in a facility. It's kind of, I would say, directly proportional to the square footage of the facility and the types of cleanroom space they have inside and how active that facility is. Very generally speaking, the larger the facility, the greater the consumption is of plates and the business case for the APAS system becomes substantially stronger. There is also a huge market, I believe, in the contract manufacturing operation market.

Obviously, this technology saves on labor. Labor is the single largest cost for contract manufacturers, so having tools and technologies that remove people out of the manufacturing process reduces the amount of operational expense and makes these contract manufacturers much more competitive.

Speaker 5

Thank you very much, John. If I can just squeeze in one last question. Is the proportionality of this based on square footage constant across the different grades? I believe there's Grade A to D.

John Clapham
President and CEO, PSC Biotech

Mm-hmm. Yeah. With the higher classifications, obviously, there's substantially more environmental monitoring. It goes up exponentially based on the amount of environmental monitoring requirements, Grade A being the highest, Grade D or non-classified probably being lowest. It is based on risk, product risk as well as patient safety risk. Most companies err on the side of conservative approaches because they don't want to have any compliance issues with any of the regulators. Typically, they sample more than probably what they need to, and that is basically cheap insurance for these sterile manufacturing facilities.

Speaker 5

Thank you very much, John. That's all from me.

Brent Barnes
CEO and Managing Director, Clever Culture Systems

Great. Thank you, Nick. Probably got time for one last question here, and I'll hand it over to Paul Jensz from PAC Partners. Paul, over to you.

Paul Jensz
Analyst, PAC Partners

Thank you very much, Brent. Just one question for John is, how close do you get with your customers there, and can you get into the whole sort of productivity systems improvement side? Because I suppose the AI capability that Brent and the team have built in is very impressive. I'm just wondering, is there a sort of a services layer over and above the, I suppose the selling layer?

John Clapham
President and CEO, PSC Biotech

That's an excellent question, and I believe there is. I believe that, in much the same way that everyone's talking about digital transformation, I think there could be a substantial transformation in how cleanrooms are managed. I think that could be primarily done with autonomous robots and AI-enabled technology such as the APAS Clever Culture Systems. So I believe there's a really compelling business case, and we are actively working on this with Brent and his team on how we can go to market and sell from the top down on this technology.

Paul Jensz
Analyst, PAC Partners

Thank you.

Brent Barnes
CEO and Managing Director, Clever Culture Systems

Thank you, Paul. I think we're at time here, so we're going to end the call for the moment. Thank you everyone for joining. Thank you, John, for making yourself available. Of course, any follow-up questions any investors might have, please send them through to the company. Thank you all for joining. Bye now.